Brain deposited 9000 into a savings account for which interest is compounded monthly at a rate of 2.36%. How much interest will he earn after 11 years?
Hi there First find the future value using the formula of compound interest The formula is A=p (1+r/k)^kt A future value? P present value 9000 R interest rate 0.0236 k compounded monthly 12 T time 11 years A=9,000×(1+0.0236÷12)^(12×11) A=11,664.73
Now find the interest earned I=A-p I interest earned? A future value 11664.73 P present value 9000 So I=11,664.73−9,000 I=2,664.73
